Carter Bank & Trust Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full-Year Ended December 31, 2017
January 25, 2018 at 07:00 pm IST
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Carter Bank & Trust reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net interest income of $27,784,000, total noninterest income of $3,429,000, loss before income taxes of $16,771,000, net loss of $5,071,000, loss per basic and diluted common share of $0.19 compared to the net interest income of $24,823,000, total noninterest income of $3,694,000, loss before income taxes of $7,805,000, net loss of $3,865,000, loss per basic and diluted common share of $0.15 for the same quarter a year ago. Net interest margin, on a fully taxable equivalent basis, improved 32 basis points to 2.98% over the linked quarter, on a $77.3 million lower asset base. Fourth quarter was negatively impacted by a charge of $2.8 million from the write-down of the Bank’s deferred tax assets resulting from the recent tax reform legislation.
For the year, the company reported net interest income of $106,478,000, total noninterest income of $12,827,000, loss before income taxes of $18,212,000, net loss of $681,000, loss per basic and diluted common share of $0.03 compared to the net interest income of $101,040,000, total noninterest income of $12,494,000, income before income taxes of $17,624,000, net income of $15,979,000, earning per basic and diluted common share of $0.61 for the previous year. Net interest margin, on a fully taxable equivalent basis, improved 36 basis points to 2.67% year-over-year. Net interest income increased $5.4 million, or 5.4%, to $106.5 million year-over-year, on a $393.2 million lower asset base. The increase in net interest income is primarily driven by a $9.3 million decrease in interest expense during the twelve month period of 2017 as compared to the same period of 2016. This is a result of the intentional runoff of higher cost certificates of deposit. The net interest margin, on a fully taxable equivalent basis, increased 36 basis points to 2.67% over the past twelve months due to deployment of excess cash into higher yielding and diversified investment securities as well as the aforementioned runoff of higher cost deposits.
Carter Bankshares, Inc. is a bank holding company. The Company is the parent company of its wholly owned subsidiary, Carter Bank & Trust (the Bank). It provides a full range of commercial banking, consumer banking, mortgage, and services. The Bank offers a full range of deposit services including lifetime free checking, interest checking accounts, savings accounts, retirement accounts and other deposit accounts of various types, ranging from money market accounts to longer-term CDs. These products and services are available to its personal and business customers. It also offers a full range of commercial and consumer loans. Commercial loans include both secured and unsecured loans, real estate construction and acquisition loans, and commercial and industrial loans. It also provides safe deposit boxes, direct deposit of payroll and social security checks and debit cards. Online banking products include online account opening, bill pay, e-statements (paperless electronic statements).